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Posted

There should be a provision to allow for the fact hardware get cheaper over the lenght of the contract but basically any extras will cost more than market prices as this is where they will make their money. Basically it pays to get it right first time.

 

The managed service will also offer to provide equipment refreshes during the life of the contract too. In most cases where I have seen this proposed schools have to commit money per student per year up-front for the privilege. As not many schools have the luxury of knowing what their budgets are going to be for the next 5 years this is being seen as a bit of a risk by some.

Posted
They are held to a contracted payment mechanism that means they pay penalties of they don't fix in a stated time.

 

I agree with everything you say except this line. Such penalties will be decided in court and who do you think will win that? The big private company with the best business legal team money can buy or your LA with their fresh out of law school lawyer dressed in his Tesco suit?

 

And let's not forget the writing of those contracts in the first place.

Posted
I agree with everything you say except this line. Such penalties will be decided in court and who do you think will win that? The big private company with the best business legal team money can buy or your LA with their fresh out of law school lawyer dressed in his Tesco suit?

 

And let's not forget the writing of those contracts in the first place.

 

These penalty clauses are standard in most outsourcing contracts. All that happens is the service provider inflates his bid price to reflect the possibility of having to pay out; in other words you get some of your own money back. I don't think many schools are interested in penalty clauses, what they want is a reliable service that meets their requirements within their budget. I suspect that the LAs will benefit more than the schools from penalty payments.

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